Crude falls as doubts rise on Spain bailout

11 June 2012 16:56  [Source: ICIS news]

LONDON (ICIS)--The front-month July Brent contract fell by more than $1.00/bbl on Monday afternoon as doubts rise over the success of a Spanish bailout package.

By 15:10 GMT, the front-month July ICE Brent contract fell to an intra-day low of $98.41/bbl, a loss of $1.06 compared with the previous settlement. The contract then edged a little higher to trade around $98.60/bbl.

At the same time, the front-month July WTI contract was trading around $83.40/bbl, having touched an intra-day low of $83.24/bbl, a loss of 86 cents compared with Friday's settlement.

Earlier in the day, crude oil and many other commodities strengthened after eurozone ministers agreed to provide Spain with a bailout package. The bailout package was agreed over the weekend with eurozone ministers lending Spain up to €100bn ($125bn) to help the country’s struggling banking sector.

However, analysts have warned that the deal will not bring an end to the european debt crisis, while investors are now worried Spain may find it difficult to pay back the money.

Author: Kawai Wiong

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